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AdaptHealth posts Q4 loss, revenue climbs

EditorAhmed Abdulazez Abdulkadir
Published 2024-02-27, 08:12 a/m
© Reuters.
AHCO
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PLYMOUTH MEETING - AdaptHealth Corp. (NASDAQ: NASDAQ:AHCO), a provider of home medical equipment and related services, reported a fourth-quarter loss per share of -$1.91, which was significantly below the analyst consensus estimate of $0.19.

Despite the loss, the company's revenue for the quarter was $858.2 million, exceeding the consensus estimate of $825.45 million and marking a 10.0% increase from the $780.3 million reported in the same quarter last year.

The company's net loss for the quarter was primarily attributed to a $318.9 million pre-tax write down of goodwill. However, AdaptHealth experienced a substantial increase in adjusted EBITDA, which rose 40.2% to $204.6 million from $146.0 million in the prior-year period.

Cash flow from operations also saw a significant jump of 60.2%, reaching $155.3 million, and free cash flow turned positive at $66.6 million compared to a negative $46.0 million in the fourth quarter of the previous year.

Looking ahead to fiscal year 2024, AdaptHealth provided guidance for net revenue in the range of $3.25 billion to $3.35 billion. This forecast brackets the analyst consensus of $3.34 billion. The company also expects adjusted EBITDA to be between $650 million and $710 million and is projecting free cash flow of $150 million to $180 million for the full year.

Richard Barasch, Chairman and Interim CEO, expressed satisfaction with the company's performance, citing strong growth in sleep and respiratory segments as key drivers. He noted, "We are also quite pleased that Adjusted EBITDA for the year increased at an even faster rate, giving us confidence that the strategic initiatives we undertook to improve efficiency have started to produce results."

AdaptHealth's services reach approximately 4.1 million patients annually across all 50 states, with a network of around 680 locations in 47 states. The company's focus on patient-centered healthcare-at-home solutions continues to be a cornerstone of its business model, as it aims to help patients manage chronic conditions and improve their quality of life.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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